Financing Receivables and Operating Leases (Tables)

6 Months Ended

Jan. 27, 2018

A summary of the Company's financing receivables is presented as follows (in millions):



January 27, 2018	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Gross	$	2,762		$	4,846		$	2,479		$	10,087
Residual value	168			—			—			168
Unearned income	(145		)	—			—			(145		)
Allowance for credit loss	(165		)	(94		)	(13		)	(272		)
Total, net	$	2,620		$	4,752		$	2,466		$	9,838
Reported as:
Current	$	1,222		$	2,258		$	1,445		$	4,925
Noncurrent	1,398			2,494			1,021			4,913
Total, net	$	2,620		$	4,752		$	2,466		$	9,838



July 29, 2017	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Gross	$	2,784		$	4,560		$	2,517		$	9,861
Residual value	173			—			—			173
Unearned income	(145		)	—			—			(145		)
Allowance for credit loss	(162		)	(103		)	(30		)	(295		)
Total, net	$	2,650		$	4,457		$	2,487		$	9,594
Reported as:
Current	$	1,301		$	2,104		$	1,451		$	4,856
Noncurrent	1,349			2,353			1,036			4,738
Total, net	$	2,650		$	4,457		$	2,487		$	9,594

Contractual Maturities of the Gross Lease Receivables

Future minimum lease payments to the Company on lease receivables as of January 27, 2018 are summarized as follows (in millions):



Fiscal Year	Amount
2018 (remaining six months)	$	707
2019	1,054
2020	602
2021	292
2022	98
Thereafter	9
Total	$	2,762

Schedule of Internal Credit Risk Rating for Each Portfolio Segment and Class

Gross receivables, excluding residual value, less unearned income categorized by the Company’s internal credit risk rating as of January 27, 2018 and July 29, 2017 are summarized as follows (in millions):



	INTERNAL CREDIT RISK RATING
January 27, 2018	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,322	$	1,244	$	51	$	2,617
Loan receivables	3,054		1,716		76		4,846
Financed service contracts	1,572		895		12		2,479
Total	$	5,948	$	3,855	$	139	$	9,942



	INTERNAL CREDIT RISK RATING
July 29, 2017	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,408	$	1,181	$	50	$	2,639
Loan receivables	2,865		1,516		179		4,560
Financed service contracts	1,593		902		22		2,517
Total	$	5,866	$	3,599	$	251	$	9,716

Schedule of Financing Receivables by Portfolio Segment and Class Aging Analysis

The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of January 27, 2018 and July 29, 2017 (in millions):



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
January 27, 2018	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	98	$	96	$	278	$	472	$	2,145	$	2,617	$	19	$	19
Loan receivables	66		124		151		341		4,505		4,846		45		45
Financed service contracts	54		85		414		553		1,926		2,479		2		2
Total	$	218	$	305	$	843	$	1,366	$	8,576	$	9,942	$	66	$	66



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 29, 2017	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	160	$	60	$	216	$	436	$	2,203	$	2,639	$	14	$	14
Loan receivables	230		48		259		537		4,023		4,560		43		43
Financed service contracts	160		77		523		760		1,757		2,517		18		2
Total	$	550	$	185	$	998	$	1,733	$	7,983	$	9,716	$	75	$	59

Allowance for Credit Loss and Related Financing Receivables

The allowances for credit loss and the related financing receivables are summarized as follows (in millions):



Three months ended January 27, 2018	CREDIT LOSS ALLOWANCES
	Lease Receivables		Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of October 28, 2017	$	160	$	106		$	23		$	289
Provisions	3		(13		)	(10		)	(20		)
Foreign exchange and other	2		1			—			3
Allowance for credit loss as of January 27, 2018	$	165	$	94		$	13		$	272



Six months ended January 27, 2018	CREDIT LOSS ALLOWANCES
	Lease Receivables		Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of July 29, 2017	$	162	$	103		$	30		$	295
Provisions	1		(11		)	(16		)	(26		)
Foreign exchange and other	2		2			(1		)	3
Allowance for credit loss as of January 27, 2018	$	165	$	94		$	13		$	272



Three months ended January 28, 2017	CREDIT LOSS ALLOWANCES
	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of October 29, 2016	$	227		$	111		$	48		$	386
Provisions	2			—			(1		)	1
Recoveries (write-offs), net	(2		)	(4		)	—			(6		)
Foreign exchange and other	(2		)	(1		)	—			(3		)
Allowance for credit loss as of January 28, 2017	$	225		$	106		$	47		$	378



Six months ended January 28, 2017	CREDIT LOSS ALLOWANCES
	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of July 30, 2016	$	230		$	97		$	48		$	375
Provisions	(2		)	12			(1		)	9
Recoveries (write-offs), net	(2		)	(4		)	—			(6		)
Foreign exchange and other	(1		)	1			—			—
Allowance for credit loss as of January 28, 2017	$	225		$	106		$	47		$	378

Schedule of Property Subject to or Available for Operating Lease

Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):



	January 27, 2018			July 29, 2017
Operating lease assets	$	364		$	356
Accumulated depreciation	(232		)	(212		)
Operating lease assets, net	$	132		$	144

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future rentals on noncancelable operating leases as of January 27, 2018 are summarized as follows (in millions):



Fiscal Year	Amount
2018 (remaining six months)	$	103
2019	137
2020	68
2021	15
Thereafter	2
Total	$	325